2011 Arizona Revised Statutes
Title 42 Taxation
42-12052 Review and verification of class three property; owner's affidavit and notice; civil penalty; appeals

42-12052. Review and verification of class three property; owner's affidavit and notice; civil penalty; appeals

A. Each county assessor shall review assessment information, on a continuing basis, to ensure proper classification of residential dwellings. The assessor may enter into intergovernmental agreements with the department for an exchange of information to ensure a coordinated and comprehensive review and identification of property that may be rented while classified as class three pursuant to section 42-12003.

B. Beginning in 2012 and each even-numbered year thereafter the county assessor shall include with the notice of full cash value sent to owners of class three property pursuant to section 42-15101 an affidavit, in a form prescribed by the department, on which the owner must declare, under penalty of perjury, whether the property is the owner's primary residence, or leased or rented to a relative of the owner, as provided by section 42-12053, and used as the relative's primary residence, in the current valuation year. The owner must return the completed affidavit form to the county assessor within sixty days. If the owner indicates on the affidavit that the property is not the owner's or relative's primary residence, if the owner indicates on more than one affidavit that more than one parcel is the owner's primary residence, or if the owner fails to return the affidavit timely to the assessor, the assessor shall reclassify the property as class four pursuant to section 42-12004 or in another classification according to the property's use and within fifteen days notify the owner of the reclassification and of the owner's the right to appeal the reclassification. If for any reason an owner believes that reclassification pursuant to this subsection is erroneous, the owner may file a notice of claim with the assessor pursuant to section 42-16254 to resolve the correct classification.

C. If the assessor has reason to believe that a parcel of property that is classified as class three pursuant to section 42-12003 is not used as the owner's primary residence or is being rented, the assessor shall notify the owner, in a form prescribed by the department as provided by subsection D of this section, and request that the owner respond as to whether the property is occupied as the owner's primary residence, is a secondary residence or is used as a rental property. If the owner responds that the property is not the owner's primary residence, or if the owner fails to respond to the assessor within thirty days after the notice is mailed, the assessor shall mail the owner a final notice within thirty days requesting that the owner provide information as to whether or not the property is the owner's primary residence, a secondary residence or used as a rental property. If the owner fails to respond to the assessor within fifteen days after the final notice is mailed, the assessor shall:

1. Reclassify the property as class four. In addition to other appeal procedures provided by law, the owner of the property that is reclassified as class four under this paragraph may appeal the reclassification to the county board of supervisors within thirty days after the notice of classification is mailed. If the owner proves to the board's satisfaction that the property is occupied as the owner's primary residence, the board shall order the property to be reclassified as class three property pursuant to section 42-12003.

2. Notify the county treasurer who shall assess a civil penalty against the property equal to twice the amount of additional state aid paid pursuant to section 15-972 with respect to the property in the preceding tax year. The owner of the property shall pay a penalty under this paragraph to the county treasurer within thirty days after the notice of the penalty is mailed. The owner may appeal the penalty to the county board of supervisors within the time required for payment. If the owner proves to the board's satisfaction that the property is occupied by the owner, the board shall waive the penalty, and the property shall be listed as class three pursuant to section 42-12003. Until paid or waived, the penalty constitutes a lien against the property. The county treasurer shall deposit all revenue received from penalties assessed under this paragraph in the county general fund.

D. The department shall:

1. Prescribe all forms used to notify property owners under this section. The forms shall contain information as to criteria for the reclassification of property and the civil penalties that may result if the owner fails to respond to the notice.

2. Monitor and review the procedures and practices used by assessors and treasurers to accomplish the verification of class three property and the assessment and collection of penalties prescribed by this section and propose suggested improvements to establish uniform processes and performance among the counties.

E. The department may inspect the records of county assessors and county treasurers to determine compliance with the requirements of this section and the accuracy of the classification of owner-occupied residential property and rental property.